Putting energy reach on track

Over coffee, as I sat with a group of old schoolmates, a common friend of ours started narrating the wonderful theme of Hunny Hunt—based on the fictional anthropomorphic comic character Winnie the Pooh. It is a dark trackless ride located at Tokyo Disneyland. It was imagined in 1977. Being a core sector engineer, the conversation took me to my fascination towards supply chain.

The importance of logistics
India spends 13% of GDP on logistics, which is more than the US (9.5%) and Germany (8%), still we hear about the lack of connectivity and increase in logistics costs. The reasons may be attributable to the many challenges and geographic issues; for any nation to leap from developing to developed stage, connectivity is one of the defining parameters. The current government’s direction towards logistics is noteworthy, and yet India has to take even larger leaps now.

The modal mix for cargo transportation is suboptimal and skewed towards roads, which account for 60-65% of the total freight transported—the railways carry 30-35% and the remaining 5% is being fulfilled by air and water.

financial express
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